A client asks its accountant to provide copies of its financial records directly to its bank to support a loan application. There is no court order or other legal requirement to disclose. On what basis may the accountant disclose this confidential information to the bank?

Correct answer: C) Disclosure is permitted because the client has authorised it

Explanation

Confidential information may be disclosed when it is permitted by law and authorised by the client or employer. Here, the client has requested the disclosure, so the accountant may provide the information, ideally after confirming the authority in writing. There is no court order or anti-money laundering requirement in this case, and disclosure to third parties is permitted when properly authorised.